Before you vote: The truth about tea prices

A large-scale tea plantation in Kiambu County, picture taken Saturday, March 4 2017. PHOTO | DENNIS ONSONGO | NATION MEDIA GROUOP

The buying price of tea leaves (from farmers) is low in Kisii. Elsewhere it is high. Yet we say Kenya is one nation, one people,”
- Mr Kalonzo Musyoke, Leader, Wiper Democratic Movement, at a rally in Kisii on May 17, 2017


A Nation Newsplex review of tea auction pricing and Kenya Tea Development Agency (KTDA) payments to farmers reveals that indeed farmers from the Mt Kenya, Nyambene Hills and Abaredare Ranges areas are paid higher prices than those from Kisii and Western Highland regions.

The tea leaves are graded based on quality and condition. The highest grades are referred to as pekoe, and the lowest as fannings or dust.

Tea auction prices, which are quoted in US cents, vary from factory to factory. For instance, a May 23 analysis by Africa Tea Brokers Ltd reveals that for grade BP1, the top 37 out of 67 factories in terms of buying prices were from Mt Kenya, Nyambene Hills and Aberdare Ranges.

Factories there auctioned their tea for an average price of between $3.68 and $3.32 (Sh379- Sh342) per kilogram. Meanwhile, the bottom 29 factories auctioning grade BP1 were from Kisii, Kericho Highlands and Nandi Hills. They auctioned their tea for between $3.30 and US$3.20 (Sh340-Sh330) per kilogram.

A similar pattern was repeated for grade PF1. The top 37 factories in terms of auction prices were from Mt Kenya, Nyambene Hills and Aberdare Ranges. Their tea was auctioned for between $4.64 and $3.36 (Sh474 and Sh346).

For grade PF1, the bottom 30 factories were from Kisii, Kericho Highlands and Nandi Hills. Their tea were auctioned for between US$3.28 and US$2.90 (Sh344-Sh305) per kilogram.

The same pattern was repeated for grades PD and D1.

In the past when farmers from the western region complained of lower pay, KTDA Managing Director Lerionka Tiampati said consumers prefer tea from the Eastern region because it is of higher quality, which affects pricing and bonuses. Quality of tea leaves is affected by climate and soil type.

He also said the efficiency of factories and cost of production affect payment to farmers. But to this last point, critics ask why KTDA-owned factories do not have the same standard of production.

In early 2015, tea from western Kenya, for the first time in 20 years, attracted a higher average price than that from Meru at the Mombasa auction. However, the next tea bonus earned them less than their Eastern counterparts.

In the final quarter of 2016 KTDA paid small-holder tea farmers in Kirinyaga County the highest bonus in the country at Sh48.35 a kilo. Also among the top earners were farmers from Kimunye in Kirinyaga (Sh47.50), Gitugi in Nyeri County (Sh46.50) and Rukuriri in Embu County (Sh46).

Farmers from Trans Nzoia County received the least bonus at Sh22 per kilo. Farmers from Tombe in Nyamira County got Sh22.50 and Ogembo/Eberege in Kisii County (Sh24.80).

Mr Musyoka is correct that tea farmers from Kisii are generally paid less per kilo for their tea leaves than farmers from eastern Kenya. However, his remarks are misleading because they imply the payments have something to do with political status for which there appears no evidence.